NY State Senate Bill 2021-S6523

Senate Bill S6523

2021-2022 Legislative Session

Increases the income thresholds for eligibility for the senior citizen and disabled person property tax exemptions

download bill text pdf

Archive: Last Bill Status - In Senate Committee Aging Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to aging
May 04, 2021	referred to aging

2021-S6523 (ACTIVE) - Details

Current Committee:: Senate Aging
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§467 & 459-c, RPT L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S7803
2019-2020: S1244
2023-2024: S5948

2021-S6523 (ACTIVE) - Summary

Increases the income thresholds for eligibility for the senior citizen and disabled person property tax exemptions; applies to any local law, resolution or ordinance amended or adopted on and after the effective date of this act.

2021-S6523 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S6523                Revised 10/4/2021

SPONSOR: REICHLIN-MELNICK
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the senior
citizen and disabled property owner exemption

 
PURPOSE:

This bill increases the income thresholds for eligibility for the senior
citizen and disabled person property tax exemptions.

 
SUMMARY OF PROVISIONS:

Sections 1 amends paragraph (b) of subdivision 1 of section 467 of the
real property tax law. Section 2 amends paragraph (a) of subdivision 3
of section 467 of the real property tax law. Combined these two sections
have the effect by simplifying the SCHE percentage gradient, eliminating
the population restriction thereby making this version of SCHE available
statewide, and increasing the program's eligibility limit to $85,000 per

year.

Section 3 amends paragraph (b) of subdivision 1 of section 459-c of the
real property tax law. Section 4 amends paragraph (a) of subdivision 5
of section 459-C of the real property tax law. Combined these two
sections have the effect of simplifying the DHE percentage gradient,
eliminating the population restriction thereby making this version of
DHE available statewide, and increasing the program's eligibility limit
to $85,000 per year.

Section 5 provides that the state will reimburse municipalities for the
difference between real property tax revenue abated after the new tax
thresholds take effect and the real property tax revenue that would have
been abated prior to the new thresholds.

Section 6 provides that this act shall take effect immediately and shall
only apply to localities who adopt or amend a local law, resolution, or
ordinance related to the provisions of this act on or after its effec-
tive date.

 
JUSTIFICATION:

The Senior Citizen Homeowners' Exemption (SCHE) and the Disabled Home-
owners' Exemption (DHE) are statewide programs that help seniors and
disabled individuals remain in their homes/communities by providing
critical tax exemptions.

This bill would provide much needed property tax relief by raising the
income eligibility thresholds and corresponding abatement levels for the
SCHE/DHE program. Strengthening this important tax abatement would help
ensure that seniors and disabled homeowners can continue to afford to
remain in New York, a high property tax state. An estimated 400,000 New
Yorkers would benefit from this expansion to the program.

 
LEGISLATIVE HISTORY:

2019-20: S1244 - Referred to Local Government

2017-18: S7803 - Referred to Local Government

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S6523 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6523
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                May 4, 2021
                                ___________
 
 Introduced  by  Sen. REICHLIN-MELNICK -- read twice and ordered printed,
   and when printed to be committed to the Committee on Aging
 
 AN ACT to amend the real property tax law, in  relation  to  the  senior
   citizen and disabled property owner exemption
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (b) of subdivision 1 of section 467 of  the  real
 property tax law, as amended by chapter 261 of the laws of 1994, subpar-
 agraph 3 as added by chapter 402 of the laws of 1995, is amended to read
 as follows:
   (b)  (1)  Any  local  law, ordinance or resolution adopted pursuant to
 paragraph (a) of this subdivision may be amended, or a local law,  ordi-
 nance  or  resolution  may  be adopted, to provide an exemption so as to
 increase the maximum income eligibility level of such  municipal  corpo-
 ration  as provided in subdivision three of this section (represented in
 the hereinbelow schedule as M), to the extent provided in the  following
 schedule:
 
   ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
                                         EXEMPT FROM TAXATION
 More than (M) but
      [less than (M+ $1,000)                  45 per centum
 (M+ $1,000 or more) but
      less than (M+ $2,000)                   40 per centum
 (M+ $2,000 or more) but]
      less than (M+ [$3,000] $10,000)         35 per centum
 [(M+ $3,000 or more) but
      less than (M+ $3,900)                   30 per centum
 (M+ $3,900 or more) but
      less than (M+ $4,800)                   25 per centum
 (M+ $4,800 or more) but

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08252-02-1

 S. 6523                             2

      less than (M+ $5,700)                   20 per centum]
   (2) Any local law, ordinance or resolution adopted pursuant to subpar-
 agraph  one  of this paragraph may be amended, or a local law, ordinance
 or resolution may be adopted, to provide an exemption so as to  increase
 the  maximum  income  eligibility level of such municipal corporation as
 provided in subdivision three of this section (represented in the  here-
 inbelow schedule as M), and as increased as provided for in such subpar-
 agraph one to the extent provided in the following schedule:
 
  ANNUAL INCOME                          PERCENTAGE ASSESSED VALUATION
                                         EXEMPT FROM TAXATION
 (M+ [$5,700] $10,000 or more) but
      less than (M+ [$6,600] $25,000)         15 per centum
 [(M+ $6,600 or more) but
      less than (M+ $7,500                    10 per centum]
   (3) Any local law, ordinance or resolution adopted pursuant to subpar-
 agraphs  one  and  two of this paragraph may be amended, or a local law,
 ordinance or resolution may be adopted, to provide an exemption so as to
 increase the maximum income eligibility level of such  municipal  corpo-
 ration  as provided in subdivision three of this section (represented in
 the hereinbelow schedule as M), and as increased as provided for in such
 subparagraph one to the extent provided in the following schedule:
  ANNUAL INCOME                          PERCENTAGE ASSESSED VALUATION
                                         EXEMPT FROM TAXATION
 (M+ [$7,500] $25,000 or more) but
      less than (M+ [$8,400] $35,000)         5 per centum
 
   § 2. Paragraph (a) of subdivision 3 of section 467 of the real proper-
 ty tax law, as separately amended by chapters 131 and 279 of the laws of
 2017, is amended to read as follows:
   (a) if the income of the owner or the combined income of the owners of
 the property for the income tax year immediately preceding the  date  of
 making  application  for  exemption  exceeds  the  sum of three thousand
 dollars, or such other sum not less than three thousand dollars nor more
 than twenty-six thousand dollars beginning July first, two thousand six,
 twenty-seven thousand dollars beginning July first, two thousand  seven,
 twenty-eight  thousand dollars beginning July first, two thousand eight,
 twenty-nine thousand dollars beginning July first,  two  thousand  nine,
 and  [in a city with a population of one million or more] fifty thousand
 dollars beginning July first, two thousand seventeen, as may be provided
 by the local law, ordinance  or  resolution  adopted  pursuant  to  this
 section.  Income  tax  year shall mean the twelve month period for which
 the owner or owners filed a federal personal income tax return, or if no
 such return is filed, the calendar year. Where title is vested in either
 the husband or the wife, their combined income may not exceed such  sum,
 except  where  the  husband  or wife, or ex-husband or ex-wife is absent
 from the property as provided in subparagraph (ii) of paragraph  (d)  of
 this subdivision, then only the income of the spouse or ex-spouse resid-
 ing  on  the  property  shall be considered and may not exceed such sum.
 Such income shall  include  social  security  and  retirement  benefits,
 interest,  dividends,  total gain from the sale or exchange of a capital
 asset which may be offset by a loss from the sale or exchange of a capi-
 tal asset in the same income tax year,  net  rental  income,  salary  or
 earnings,  and  net income from self-employment, but shall not include a
 return of capital, gifts, inheritances,  payments  made  to  individuals
 because  of  their  status as victims of Nazi persecution, as defined in

 S. 6523                             3
 
 P.L. 103-286 or monies earned through employment in the  federal  foster
 grandparent  program  and any such income shall be offset by all medical
 and prescription drug expenses actually paid which were  not  reimbursed
 or  paid  for  by  insurance,  if the governing board of a municipality,
 after a public hearing, adopts a  local  law,  ordinance  or  resolution
 providing therefor. In addition, an exchange of an annuity for an annui-
 ty  contract,  which  resulted  in  non-taxable  gain,  as determined in
 section one thousand thirty-five of the internal revenue code, shall  be
 excluded  from  such income. Provided that such exclusion shall be based
 on satisfactory proof that such an exchange was solely an exchange of an
 annuity for an annuity contract that resulted in a non-taxable  transfer
 determined  by  such  section of the internal revenue code. Furthermore,
 such income shall not include the proceeds of  a  reverse  mortgage,  as
 authorized by section six-h of the banking law, and sections two hundred
 eighty  and  two  hundred  eighty-a  of the real property law; provided,
 however, that monies used  to  repay  a  reverse  mortgage  may  not  be
 deducted  from  income,  and  provided additionally that any interest or
 dividends realized from the  investment  of  reverse  mortgage  proceeds
 shall  be  considered  income. The provisions of this paragraph notwith-
 standing, such income shall  not  include  veterans  disability  compen-
 sation,  as  defined  in Title 38 of the United States Code provided the
 governing board of such municipality, after  public  hearing,  adopts  a
 local  law, ordinance or resolution providing therefor. In computing net
 rental income  and  net  income  from  self-employment  no  depreciation
 deduction  shall be allowed for the exhaustion, wear and tear of real or
 personal property held for the production of income;
   § 3. Paragraph (b) of subdivision 1 of section 459-c of the real prop-
 erty tax law, as added by chapter 315 of the laws of 1997, is amended to
 read as follows:
   (b) Any local law or resolution adopted pursuant to paragraph  (a)  of
 this  subdivision  may  be  amended, or a local law or resolution may be
 adopted, to provide an exemption so as to increase  the  maximum  income
 eligibility  level of such municipal corporation as provided in subdivi-
 sion five of this section (represented in the  hereinbelow  schedule  as
 M), to the extent provided in the following schedule:
   ANNUAL INCOME                         PERCENTAGE ASSESSED VALUATION
                                         EXEMPT FROM TAXATION
 More than (M) but
      [less than (M+ $1,000)                  45 per centum
 (M+ $1,000 or more) but
      less than (M+ $2,000)                   40 per centum
 (M+ $2,000 or more) but]
      less than (M+ [$3,000] $10,000)         35 per centum
 [(M+ $3,000 or more) but
      less than (M+ $3,900)                   30 per centum
 (M+ $3,900 or more) but
      less than (M+ $4,800)                   25 per centum
 (M+ $4,800 or more) but
      less than (M+ $5,700)                   20 per centum]
 (M+ [$5,700] $10,000 or more) but
      less than (M+ [$6,600] $25,000)         15 per centum
 [(M+ $6,600 or more) but
      less than (M+ $7,500)                   10 per centum]
 (M + [$7,500] $25,000 or more) but
      less than (M+ [$8,400] $35,000)         5 per centum

 S. 6523                             4

   § 4. Paragraph (a) of subdivision 5 of section 459-c of the real prop-
 erty  tax law, as amended by chapter 131 of the laws of 2017, is amended
 to read as follows:
   (a) if the income of the owner or the combined income of the owners of
 the  property  for the income tax year immediately preceding the date of
 making application for exemption  exceeds  the  sum  of  three  thousand
 dollars, or such other sum not less than three thousand dollars nor more
 than twenty-six thousand dollars beginning July first, two thousand six,
 twenty-seven  thousand dollars beginning July first, two thousand seven,
 twenty-eight thousand dollars beginning July first, two thousand  eight,
 twenty-nine  thousand  dollars  beginning July first, two thousand nine,
 and [in a city with a population of one million or more] fifty  thousand
 dollars beginning July first, two thousand seventeen, as may be provided
 by  the local law or resolution adopted pursuant to this section. Income
 tax year shall mean the twelve month  period  for  which  the  owner  or
 owners  filed a federal personal income tax return, or if no such return
 is filed, the calendar year. Where title is vested in either the husband
 or the wife, their combined income may not exceed such sum, except where
 the husband or wife, or ex-husband or ex-wife is absent from the proper-
 ty due to divorce, legal separation or abandonment, then only the income
 of the spouse or ex-spouse residing on the property shall be  considered
 and  may  not exceed such sum. Such income shall include social security
 and retirement benefits, interest, dividends, total gain from  the  sale
 or  exchange  of  a capital asset which may be offset by a loss from the
 sale or exchange of a capital asset in the same  income  tax  year,  net
 rental  income, salary or earnings, and net income from self-employment,
 but shall not include a return of capital, gifts, inheritances or monies
 earned through employment in the federal foster grandparent program  and
 any  such  income  shall  be offset by all medical and prescription drug
 expenses actually paid which were not reimbursed or paid for  by  insur-
 ance,  if the governing board of a municipality, after a public hearing,
 adopts a local law or resolution providing therefor.  In  computing  net
 rental  income  and  net  income  from  self-employment  no depreciation
 deduction shall be allowed for the exhaustion, wear and tear of real  or
 personal property held for the production of income;
   § 5. The state shall, within an appropriation made available therefor,
 reimburse  municipal  corporations for the difference between the amount
 of real property tax revenue abated for the fiscal year of such  munici-
 pality that occurs after April 1, 2021 pursuant to the income thresholds
 established  pursuant  to the provisions  of this act, and the amount of
 real property tax revenue that would have been abated  for  such  period
 pursuant  to the income thresholds that were in effect immediately prior
 to the effective date of this act.
   § 6. This act shall take effect immediately and  shall  apply  to  any
 local  law,  resolution or ordinance amended or adopted on and after the
 effective date of this act.

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